BILL ANALYSIS �
Bill No: AB
363
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Bill Analysis
AB 363 Author: Hayashi
As Amended: April 14, 2011
Hearing Date: June 14, 2011
Consultant: Paul Donahue
SUBJECT : California State Lottery; Reports
SUMMARY : Extends the due date from December 31 to April 1
for each of the next five years on the State Controller's
reporting requirements on the California State Lottery
Commission's efforts to boost income for public education.
Existing law :
1) The California State Lottery Act of 1984, enacted by
initiative, authorizes a California State Lottery and
provides for its operation and administration by the
California State Lottery Commission and the Director of the
California State Lottery.
2) Requires the Commission to establish the percentage of
total annual revenues of the state lottery to be allocated
to the benefit of public education at a level that
maximizes the total net revenues allocated for the benefit
of public education.
3) Requires the Controller, by September 1 of each fiscal
year for 5 years following the enactment of this provision,
to report to the Legislature whether specified events
relating to the total net revenues allocated to the benefit
of public education have occurred and, if so, to notify the
Legislature and the Governor.
4) Requires the Controller to convene a lottery review
group to report to the Legislature, no later than December
31 following the final fiscal year of that 5-year period,
AB 363 (Hayashi) continued
Page 2
on whether certain provisions have furthered the purposes
of the Lottery Act.
5) Under existing law, those provisions shall remain in
effect only until December 31 of the year of notification
from the Controller to the Legislature and the Governor
that those specified events relating to the total net
revenues allocated to the benefit of public education have
occurred, and the prior law will be restored at that time.
This bill :
1) Changes the reporting date for the California State
Controller to make specific reports to the Legislature from
December 31 to April 1, for each of the next five years,
regarding the State Lottery's efforts to boost income for
public education.
2) Extends the operation of the change described above
until April 1 of the year following notification of the
Legislature and the Governor by the Controller that
specified events relating to the total net revenues
allocated to the benefit of public education have occurred,
and the prior law will be restored at that time.
COMMENTS :
1) Purpose of the bill : This measure would extend the time
within which the Controller may complete reports required
by recent statutory changes to the Lottery Act that
enhanced the funding for education.
In support of the bill, the Controller states that this
bill would provide his office with additional time to
review and report on the State Lottery's allocations to
public education by extending the deadline to determine
whether total net revenues allocated by the State Lottery
has increased or decreased for the next 5 years, beginning
in 2010.
2) Background : AB 142 (Hayashi) of 2010 required the State
Lottery to allocate revenues to maximize the amount of
funding allocated to the public education system in
California. The bill also required the Controller to
report to the Legislature whether specified events relating
to the total net revenues allocated to the benefit of
AB 363 (Hayashi) continued
Page 3
public education have occurred, and whether certain actions
have furthered the purpose of the California State Lottery
Act. The reports are due September 1 and December 31,
respectively, following the final fiscal year of that
5-year period.
The State Controller's office reports that completing the
review by the dates required by law has been problematic
because the Division of Audits only receives the
information necessary to conduct the reports during the
last week of August and the last week of October,
respectively. By extending these deadlines a few months,
this bill would provide the Division of Audits with the
necessary time to perform a quarterly review and to
determine if the Lottery is in compliance with AB 142.
3) Related legislation :
AB 142 (Hayashi, Stats. 2010, ch. 13) modified the
allocation formula of the Act of 1984, also known as
Proposition 37. Repeals the modifications to the
allocation formula if the Controller determines that
revenues allocated to the benefit of public education by
the Lottery are less than what would have been allocated if
the law were not changed.
SUPPORT:
John Chiang, California State Controller (source)
OPPOSE: None on file
FISCAL COMMITTEE: No
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